How to find a reliable charitable organization for car donation? Planning to give your prized vehicle to charity for a noble cause? To make sure that the money generated by donating your car helps the homeless, finding a reputed charitable organization is really important. Therefore, to find a suitable NGO or trust to donate your car, you should avoid middlemen. This is because middlemen usually keep a major part of the vehicle's value for their own use. Therefore, make it a point to find out those organizations which accepts vehicle donations directly. In order to avail tax deductions, look for the ones which are qualify for it. Usually, religious organizations approved under 501(c) (3) of Internal Revenue Service (IRS) fulfill these criteria. In case, your automobile is worth more than $500 then the IRS will ask for a proof about the exact amount which went to charity. Therefore, you need to ask the charitable trust to provide you with a receipt stating the amount of money which it got from reselling the automobile. The money on which you will get tax deduction will be equal to the amount which the charitable trust will get by selling your vehicle. Also make sure that you join IRS Form 8283 to your tax returns. To protect stay safe from lengthy legal hassles, find out the existing rules using which you can transfer the title to the charitable trust whom you donate your car. In order to save the amount which you would have spent on car delivery, you can deliver it to yourself to them directly.
Complete the necessary paperwork for the vehicle transfer
This is necessary to ensure that you are not held responsible for committing any crime or for parking tickets before the transfer process is completed. So, if the trust that you are offering vehicle donation doesnâ€™t fills the transfer title blank, then you should look for some other trust who complies with all existing rules. This will make sure that the NGO or trust you are dealing with is a legitimate one. You can claim tax benefits on the amount at which the charity sold, provided the organization fills the IRS form 1098C. This form provides valuable information about the price at which the charity sold the car along with all related information. Vehicle donation programs are for profit as well as non profit. For profit charitable organizations usually keep a portion of the amount received by selling cars at auctions. Nonprofit charitable trusts often use these cars to transport patients or goods. Some of them even offer free vehicle removal facilities as well. To find out the NGOs as well as charitable trusts which offer this amenity, you need to do a bit of research. This will make sure that the proceeds help in the upliftment of homeless people. They will beable to lead a decent life as a result.
Summary- Finding a reputed charitable organization or NGO to donate your car is a time taking task. To make certain that the proceeds from selling your vehicle reach the needy, make it a point to avoid middlemen at all costs. In order to avail tax deductions, you should look for the ones which qualify for it under 501(c) (3) of Internal Revenue Service (IRS).
Published on Apr 25, 2014
Finding a reputed charitable organization or NGO to donate your car is a time taking task.